In return, the developers behind Heer’s Luxury Living, LLC agreed to make a number of “public benefit improvements” as part of the redevelopment, among them the inclusion of a satellite office for Springfield police on the building’s first floor.

According to the initial term sheet, the 900- to 1,000-square-foot office was to be leased to the city at no cost for 10 years, allowing for increased police presence at the building and nearby Park Central Square.

Burlison said during the meeting that he didn’t want the amendment to derail the project. He also sought assurance from city staff that changes to the term sheet — a non-binding outline of a more detailed deal —wouldn’t prevent further negotiation with the building owners.

Council members present approved the change 5-3. The vote approving the amended term sheet passed unanimously.

In subsequent correspondence with city staff, Nichols said he’s willing to extend the substation lease — but not for free.

“While we recognize that a 15 year commitment for the police office space is a value to the citizens of Springfield and to Heer’s Luxury Living, LLC, we must balance that benefit with the financial fortitude of the asset,” Nichols wrote in a June 19 letter to Mary Lilly Smith, the city’s director of economic development.

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He offered two possible options:

• After 10 years rent-free, the city would have the option of extending the substation lease for another five years at a rate of $950 a month plus utilities. At about $12 a square foot, that rate is below the downtown average for office space, which runs about $17 a square foot, according to the city.

• The rent-free lease would be extended to 15 years, but the city would agree to waive a proposed $40,000 cash payment required of Heer’s Luxury Living as part of the development deal. The payment, to be paid as soon as construction financing is secured, is meant to offset part of the $100,000 the city spent boarding up the building after previous renovation plans stalled.

In a letter to council members, Smith said city staff, police and Nichols prefer the first option. Council members will consider alternate bills with both options during a special council meeting today.

The meeting, to follow council’s regular Tuesday lunch meeting, will be open to the public and include an opportunity for residents to comment.

Mayor Bob Stephens said it is important for council to review its June 17 decision “because it was a one-sided agreement — we tacked something on without consulting (the developers).”

“I think he was surprised, I think we were surprised, I think city staff were surprised,” Stephens said, arguing that the original agreement “was squarely within our policy for economic development (incentives).”

Burlison, reached Monday, said he hadn’t yet read the alternative bills that were drafted.

“It sounds like they definitely want to get something in return for that extra five years,” he said. “We may just need to withdraw that if it’s going to be too burdensome for the city.”

Burlison said he suggested the extension as a way of getting more for the city in return for the tax abatement and other incentives being offered.

He said the option of extending the lease with a reduced rent is worth considering, but he doesn’t want the city to waive the $40,000 payment.

“That’s kind of going in a different direction than I was hoping for,” he said. “I’d still like to see some cash paid up front to get rid of some of the lien on that building ...

“It’s just kind of disappointing we couldn’t have gotten some more police presence down there without significant additional costs.”